Welcome!

API Journal Authors: Liz McMillan, Pat Romanski, Elizabeth White, Carmen Gonzalez, Jonathan Fries

News Feed Item

Zacks Bull and Bear of the Day Highlights: Thoratec, J. C. Penney, Flextronics International, Google and Apple

CHICAGO, Dec. 14, 2012 /PRNewswire/ -- Zacks Equity Research highlights Thoratec Corp. (Nasdaq:THOR) as the Bull of the Day and J. C. Penney (NYSE:JCP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Flextronics International Ltd. (Nasdaq:FLEX), Google (Nasdaq:GOOG) and Apple Inc. (Nasdaq:AAPL).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.

Here is a synopsis of all five stocks:

Bull of the Day:

We maintain our recommendation for Thoratec Corp. (Nasdaq:THOR) at Outperform. Its earnings per share of $0.44 in the third quarter beat the Zacks Consensus Estimate. The company achieved 27% unit growth for HeartMate II in the third quarter.

Thoratec's competitor HeartWare has gotten approval, in November 2012, from the FDA for its Ventricular Assist System as a bridge to transplantation. However, there is no imminent competitive threat from HeartWare in the DT segment, as its product is not expected to be launched till 2015. We believe that the DT condition will account for the major part of growth in the Ventricular Assist Device (VAD) market.

Despite less visibility, Thoratec has expertise in product development. The company continues to do well in overseas markets despite economic turmoil in Europe. We maintain our recommendation on the stock with a price target of $44.00, based on a P/E of 27.5x our 2012 EPS estimate.

 Bear of the Day:

J. C. Penney (NYSE:JCP) posted a third-quarter 2012 loss of $0.93 per share that fared worse than the earnings of $0.18 in the year-ago quarter and the Zacks Consensus Estimate of loss of $0.08. The company has missed the Zacks Consensus Estimate in the last four quarters by an average of 328.2%. Total revenue also fell 26.6%, whereas comp sales slid 26.1%.

We observe that despite a well-diversified supplier base, the company has been struggling against other retail chains. Its dismal results dashed those hopes at least for the near term. Moreover, erratic consumer behavior and a sluggish economic recovery still remain matters of concern.

Currently, we maintain our Underperform recommendation on the stock. Our target price of $26.00 is based on a price-to-cash-flow multiple of 4.8X.

Latest Posts on the Zacks Analyst Blog:

Flextronics to Buy Motorola Assets

Electronic product contract manufacturer, Flextronics International Ltd. (Nasdaq:FLEX) recently announced an agreement with Motorola Mobility LLC to acquire the latter's manufacturing facility and equipment in Tianjin, China and related equipment in Jaguariuna, Brazil for an undisclosed amount. The deal is expected to be completed by the end of first half of calendar year 2013.

In May 2012, Google (Nasdaq:GOOG) acquired Motorola Mobility for approximately $12.5 billion. The current deal reflects Google's strategy of downsizing Motorola's existing operations in order to save cost. The deal will make Flextronics Motorola's biggest outsourcing partner.

Currently, Flextronics serves both Google and Apple Inc. (Nasdaq:AAPL). We believe that Flextronics is well positioned to benefit from the growing rivalry between these two companies over the long term.

Flextronics expects the deal to be accretive on both operating income and earnings per share basis for fiscal year 2014. Revenue potential is expected to be of several billions and operating margin remains within the target range for its High Velocity Business segment. The company expects to earn a return on invested capital ("ROIC") of 20% going forward.

Flextronics announced that the two facilities, along with equipment and assets are worth approximately $75.0 million and the company is not paying any premium for these items. Moreover, Flextronics will acquire a highly trained and skilled ready-to-deploy employee group, which will save it a lot of time and training money, in our view.

We believe that the deal will be significantly beneficial for Flextronics as it will help in expanding the company's manufacturing capacity in the low cost regions of China and Brazil. Notably, in August this year Nokia Siemens Network signed a contract with Flextronics to open an assembly line in Brazil.

Acquisitions have been an integral part of Flextronics' growth story. Although most of the acquisitions were that of start-ups and small companies, they helped Flextronics to expand its presence in the communications, medical, infrastructure and automotive sectors. We believe that the Motorola facility acquisition will further drive its growth prospects over the long term.

However, Google's intentions regarding the Motorola hardware operations are not very clear. The search giant has already announced its intentions of exiting the entry-level low-margin handset business and focusing on high-end smartphones, where Motorola used to have minimum presence.

We believe that this uncertainty related to Google's motive over Motorola's handset manufacturing business will be a significant headwind for Flextronics going forward. If Google suddenly decides to wind up the whole business, both the current facilities will become idle (currently they will only manufacture Motorola handsets), which will hurt Flextronics' top-line growth going forward.

Moreover, macro-economic concerns and weak end-market demand are the other major concerns in the near term.

We have an Underperform recommendation on Flextronics over the long term. Currently, Flextronics has a Zacks #4 Rank (Sell).

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=7158.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment

Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4582.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter:  http://twitter.com/zacksresearch

Join us on Facebook:  http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com 

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.